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The safest startup investment is...
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NEW STARTUPS
Startups that you can invest in with as little as $100 right now:
🧢 HAVN - EMF-blocking apparel, backed by Lululemon’s former president (LINK)
☕️ Big Guns Coffee & Farm - Hydroponic coffee farms (LINK)
🏈 Upside - Sports betting app that’s giving 30% equity to its users (LINK)
DeFi: Pioneering Finance and Blockchain Integration
DeFi Technologies Inc. (CAD: DEFI & US: DEFTF) combines innovation and financial expertise to redefine digital asset investments. With $152M YTD revenue, zero debt, and Nasdaq ambitions, DeFi is unlocking new opportunities in the $3T crypto market. Discover why investors are taking notice.
STARTENGINE’S STOCKPILE
The golden rule for safe investing is diversification.
For an asset class like startups, this can be pretty time-consuming. Sifting through hundreds of offering circulars to conduct due diligence… not everybody has time for that.
Well, there’s a way to diversify without doing all that.
StartEngine is one of the top crowdfunding portals, it hosts a ton of the startups that raise capital from retail investors.
Not many people know this, but StartEngine takes equity in every startup that successfully raises funds on their platform.
The equity equates to 2% of the total amount raised by the startup.
Over they years, StartEngine has amassed millions of dollars in equity across hundreds of startups.
Per the company’s latest quarterly report, they now own $9,069,365 in stock.
In reality, the figure is probably closer to $11-$12M.
This is because of the way StartEngine calculates the value of the stock. For many of the startups, StartEngine applies a 33% discount to this value for accounting purposes.
By investing in StartEngine itself, you would essentially diversify your exposure across hundreds of startups. Should any of StartEngine’s portfolio hit it could result in a major payday for the company.
EVEN MORE EXPOSURE
StartEngine has also rolled out StartEngine Private, which is becoming a large part of their business.
See that orange part of the bar that’s taking over the revenue chart? That’s revenues coming in from StartEngine Private.
Here’s how Private works: StartEngine will acquire chunks of stock in late-stage startups from startup employees or other early investors.
StartEngine then sells that equity to accredited investors on their platform - at a slightly marked up price. The involvement doesn’t end there for StartEngine however.
StartEngine keeps a 20% carried interest in all StartEngine Private stock that it sells to investors; meaning 20% of any profits generated by the equity will be funneled back to StartEngine.
The startups included in Private are highly coveted, VC-backed businesses. Here’s a few of the startups that have been included so far:
By investing in StartEngine, you are indirectly investing in some of these top-tier businesses.
So if it isn’t clear enough, StartEngine is one of the most diversified bets you can make in the startup space.
And while this de-risks the investment a bit, it’s still a risky bet and I have some concerns.
At a $1.4B valuation, I believe that the current round is over-valuing the business as it stands today. StartEngine has yet to turn a profit, losing over $13M in the first 3 quarters of 2024 alone.
I’ll have to do a deep-dive on the StartEngine funding round, there’s so much fascinating stuff going on with this business. If you do want to check out their raise page, I’ll link it here!
FROM THE X COMMUNITY…
what is the male equivalent of having an onlyfans? having an investment newsletter?
— Blair Dulder CPA™ 🧃 (@runaway_vol)
6:28 PM • Dec 4, 2024
ya got me 😂
give me a follow on X if you haven’t already!
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